A decision by U.S. drugmaker AbbVie to scrap its plans to purchase Dublin-based Shire could mean that bankers miss out on up to $135 million in fees linked to the deal. Wall Street bank JPMorgan Chase & Co risks being the biggest loser. It was sole adviser to Abbvie and had been set to earn $45 million in fees, a substantial portion of which were to be paid on completion, according to Abbvie's deal prospectus.Shire's advisers -- Goldman Sachs, Morgan Stanley , Citi, Deutsche Bank and Evercore -- were set to share a fee pool of between $70 and $90 million, according to estimates from Thomson Reuters/Freeman Consulting.It is not known how much could still be payable to advisors. Bankers will typically earn about 10 percent of the fee total if a deal fails, according to the consulting firm.For example, British water company Severn Trent paid 19 million pounds ($30.4 million) in fees to its legal and financial advisers when it fended off a takeover bid by a Canadian-led consortium of investors in 2013.
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM fell by 1.34% or $-0.7466/share to $54.78. In the past year, the shares have traded as low as $51.30 and as high as $61.85. On average, 13618500 shares of JPM exchange hands on a given day and today's volume is recorded at 8499224.
Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS fell by 1.13% or $-0.37/share to $32.24. In the past year, the shares have traded as low as $28.15 and as high as $36.44. On average, 9514260 shares of MS exchange hands on a given day and today's volume is recorded at 3873944.
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